Reduction in production costs helps the firm to reduce, helping the market size to increase. A company can thus try to create a dominating position in the market where it operates. This is seen in markets that are highly price-sensitive and budget-conscious. Under such situations, consumers will basically be interested in owning the product, not the quality or features of it. There are five alternative concepts under which organizations design and carry out their marketing strategies to answer these. Marketing is a department of management that tries to design strategies that will build profitable relationships with target consumers.
Because the whole organization is in existence because it aims to satisfy the needs of a consumer, no one can neglect a consumer problem by just tagging it as a marketing challenge. Although it may be effective for some time – that repeated efforts can sell anything – this cannot be sustained for a long period of time. If a company is able to entice a consumer once, he or she cannot be won each and every time. Thus, this concept offers only short-term gains but not long-term benefits. The use of the production concept is only effective when demand is greater than supply.
The biggest disadvantage of this concept is that it is not always the case that your customer chooses to buy the most affordable and easily accessible product. The production concept actually came about in the early 1920s during the industrial revolution. During that time, the production concept was very popular because the goods produced back then were mainly basic necessities.
There were just two main concerns for a company before they produced a product back then—whether they could produce the product and if they could produce enough of it. The market concept, on the other hand, creates suitable market intelligence as connected to present and future consumer needs, as well as the relative capabilities of the competition to satisfy those needs. This concept is the incorporation and distribution of market intelligence throughout departments and coordinated creation and implementation of a company’s response to opportunities in the market. Now, I love McDonald’s food and a lot of people enjoy what fast-food chains offer therefore satisfying consumer wants but at what cost? These companies, although making customers happy, may be hurting consumer health and causing environmental problems. Potential customers favor products that offer quality, performance, or innovative features. This concept much more theoretical and will undoubtedly influence future forms of marketing and selling approaches.
Typically the best sort of the creation concept is Vivo, typically the Chinese smartphone brand. Their particular phones are available in almost every corner of the Asian market. You can walk into any phone shop in Asia and can walk out with the latest and greatest smartphone from Vivo.
Relating to him, consumers generally show buying inertia in addition to sometimes resistant to getting and have to end up being influenced by different methods so that they will be agreed to buy. Typically the company’s function is to be able to influence consumers by applying all possible sales strategies so that they will be encouraged to buy additional. The selling concept likewise developed at the similar time, plus the product principle developed whilst still being predominant inside many industries. Here technical engineers first design and build the product, the developing makes it, the fund department prices it, ultimately, advertising sales try to be able to sell it. Followers regarding product concept philosophy hold on improving their goods over a continuous basis.
Moreover, there was quite a high level of demand that was unfulfilled. Almost everything that was manufactured then were easily sold based on production costs.